Is Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) a Strong ETF Right Now?

A smart beta exchange traded fund, the Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD) debuted on 11/01/2006, and offers broad exposure to the Consumer Discretionary ETFs category of the market.What Are Smart Beta ETFs?For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.However, some investors believe in the possibility of beating the market through exceptional stock selection, and choose a different type of fund that tracks non-cap weighted strategies: smart beta.By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.Even though this space provides many choices to investors--think one of the simplest methodologies like equal-weighting and more complicated ones like fundamental and volatility/momentum based weighting--not all have been able to deliver first-rate results.Fund Sponsor & IndexThe fund is sponsored by Invesco. It has amassed assets over $202.32 million, making it one of the average sized ETFs in the Consumer Discretionary ETFs. This particular fund, before fees and expenses, seeks to match the performance of the S&P 500 EQL WEIGHT CONS DISCRETIONARY ID.The S&P 500 Equal Weight Consumer Discretionary Index equally weights stocks in the consumer discretionary sector of the S&P 500 Index.Cost & Other ExpensesInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.Operating expenses on an annual basis are 0.40% for this ETF, which makes it on par with most peer products in the space.The fund has a 12-month trailing dividend yield of 0.99%.Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.For RSPD, it has heaviest allocation in the Consumer Discretionary sector --about 99.90% of the portfolio.Taking into account individual holdings, Tapestry Inc (TPR) accounts for about 2.83% of the fund's total assets, followed by Starbucks Corp (SBUX) and Darden Restaurants Inc (DRI).RSPD's top 10 holdings account for about 23.8% of its total assets under management.Performance and RiskThe ETF has lost about -5.71% so far this year and is down about -0.13% in the last one year (as of 04/02/2025). In the past 52-week period, it has traded between $45.16 and $56.13.The ETF has a beta of 1.27 and standard deviation of 21.63% for the trailing three-year period. With about 52 holdings, it effectively diversifies company-specific risk.AlternativesInvesco S&P 500 Equal Weight Consumer Discretionary ETF is not a suitable option for investors seeking to outperform the Consumer Discretionary ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.Vanguard Consumer Discretionary ETF (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.73 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $20.09 billion. VCR has an expense ratio of 0.09% and XLY charges 0.08%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Consumer Discretionary ETFs.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Invesco S&P 500 Equal Weight Consumer Discretionary ETF (RSPD): ETF Research Reports Starbucks Corporation (SBUX): Free Stock Analysis Report Darden Restaurants, Inc. (DRI): Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Tapestry, Inc. (TPR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks